Are China's Rates Headed Higher?

SHANGHAI -- Accelerating inflation in China is prompting fresh predictions of a further interest-rate increase at a time when credit woes are forcing the U.S. and other major economies to consider looser credit.

A surge in food prices pushed Chinese inflation in July to its fastest growth in a decade. China's National Bureau of Statistics said its consumer-price index was up 5.6% in July from the same month last year, the highest rate...